Regions Financial matches profit expectations but topped on revenue, as loans increased while deposits fell

Regions Financial Corp.
RF,
-3.10%
reported Friday second-quarter profit that was in line with expectations as revenue rose slightly above views, and as deposits dropped more than 8%. The regional bank’s stock was still inactive in the premarket. Net income was $556 million, or 59 cents a share, compared with $588 million, 59 cents a share, in the year-ago period, and to match the FactSet consensus. total revenue grew 12.0% to $1.96 billion, just above the FactSet consensus of $1.95 billion, as net interest income jumped 24.5% to $1.39 billion, which topped expectations of $1.38 billion. Total loans rose 8.6% to $98.58 billion, as strength in commercial and industrial, investor real estate and residential first mortgages offset weakness in home equity. Total deposits fell 8.2% to $126.96 billion, led by a 24.4% drop in wealth management deposits. The stock has rallied 10.8% over the past three months, while the SPDR S&P Regional Banking exchange-traded fund
KRE,
-1.26%
has gained 9.4% and the S&P 500
SPX,
+0.03%
has tacked on 9.7%.